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AINS 102: UNDERSTANDING PERSONAL
INSURANCE EXAM WITH ACCURATE
SOLUTIONS |GRADED A+
Arbitration - Correct answer-An alternative dispute
resolution (ADR) method by which disputing parties use a neutral
outside party to examine the issues and develop a
settlement, which can be final and binding.
Attachment - Correct answer-The act of seizing property to
secure a
judgment.
Catastrophe - Correct answer-A single event that causes
widespread
losses.
Civil law - Correct answer-A classification of law that applies to
legal matters not governed by criminal law and that
protects rights and provides remedies for breaches of duties
owed to others.
Compensatory damages - Correct answer-A payment
awarded by a court to reimburse a victim for actual harm.
Compulsory auto insurance law - Correct answer-Law that
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requires the owners or operators of automobiles to
carry
automobile liability insurance at least equal to
certain
minimum limits before the vehicle can be licensed or
registered.
Criminal law - Correct answer-The branch of the law that
imposes penalties for wrongs against society.
Cross-selling - Correct answer-Selling new types of
insurance products to existing
clients.
Damages - Correct answer-Money claimed by, or a monetary
award to, a party who has suffered loss or injury for which
another party is legally responsible.
Deductible - Correct answer-A portion of a covered loss that
is not paid by the insurer.
Financial responsibility laws - Correct answer-Law enacted to ensure
that motorists have the financial ability to pay for any property damage
or bodily injury they might cause as a result
of driving or owning an auto.
First party - Correct answer-The insured in an insurance
contract.
AINS 102: UNDERSTANDING PERSONAL
INSURANCE EXAM WITH ACCURATE
SOLUTIONS |GRADED A+
Arbitration - Correct answer-An alternative dispute
resolution (ADR) method by which disputing parties use a neutral
outside party to examine the issues and develop a
settlement, which can be final and binding.
Attachment - Correct answer-The act of seizing property to
secure a
judgment.
Catastrophe - Correct answer-A single event that causes
widespread
losses.
Civil law - Correct answer-A classification of law that applies to
legal matters not governed by criminal law and that
protects rights and provides remedies for breaches of duties
owed to others.
Compensatory damages - Correct answer-A payment
awarded by a court to reimburse a victim for actual harm.
Compulsory auto insurance law - Correct answer-Law that
, 2|Page
requires the owners or operators of automobiles to
carry
automobile liability insurance at least equal to
certain
minimum limits before the vehicle can be licensed or
registered.
Criminal law - Correct answer-The branch of the law that
imposes penalties for wrongs against society.
Cross-selling - Correct answer-Selling new types of
insurance products to existing
clients.
Damages - Correct answer-Money claimed by, or a monetary
award to, a party who has suffered loss or injury for which
another party is legally responsible.
Deductible - Correct answer-A portion of a covered loss that
is not paid by the insurer.
Financial responsibility laws - Correct answer-Law enacted to ensure
that motorists have the financial ability to pay for any property damage
or bodily injury they might cause as a result
of driving or owning an auto.
First party - Correct answer-The insured in an insurance
contract.
